subsidy
C1Formal, Academic, Business, Political
Definition
Meaning
Money granted by a government or public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.
Any financial aid or support given to a person, organization, or cause, often to reduce the cost of something considered beneficial or necessary.
Linguistics
Semantic Notes
Implies a deliberate transfer of funds to support, stabilize, or promote something, often with public policy or economic objectives. Connotes government or institutional involvement.
Dialectal Variation
British vs American Usage
Differences
Usage is largely identical. In UK political contexts, terms like 'subsidy' and 'grant' are sometimes used more interchangeably for certain farming or arts support, whereas US usage often strictly distinguishes 'subsidy' (ongoing operational support) from 'grant' (specific project funding).
Connotations
In both varieties, the word can carry neutral/policy or negative connotations (e.g., 'corporate welfare', 'market distortion'), depending on political context.
Frequency
Slightly higher frequency in US media due to larger debates on agricultural and energy subsidies.
Vocabulary
Collocations
Grammar
Valency Patterns
subsidy for [noun phrase]subsidy to [noun phrase/organisation]subsidy on [noun phrase/commodity]subsidy from [source]Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “on the public purse (related concept)”
- “propped up by subsidies”
Usage
Context Usage
Business
The company is only viable thanks to substantial state subsidies.
Academic
The paper analyses the impact of export subsidies on global trade dynamics.
Everyday
Some people think the government should give a subsidy to make train tickets cheaper.
Technical
The Common Agricultural Policy involves complex systems of direct payments and coupled subsidies.
Examples
By Part of Speech
verb
British English
- The theatre was subsidised by the Arts Council for decades.
- They plan to subsidise renewable energy installations.
American English
- The farm was subsidized by federal programs.
- The government subsidizes healthcare for low-income families.
adverb
British English
- The tickets are sold subsidisedly to students. (RARE)
American English
- (Rarely used; 'with a subsidy' is preferred)
adjective
British English
- They moved into subsidised housing.
- The subsidised ferry service will continue.
American English
- She works for a subsidized childcare program.
- Subsidized loans have lower interest rates.
Examples
By CEFR Level
- The government gives a subsidy to farmers.
- Museums sometimes get a subsidy.
- Without the subsidy, the bus service would be too expensive to run.
- The company received a large subsidy to build the new factory.
- The EU's proposal to phase out environmentally harmful subsidies was met with fierce opposition from member states.
- Critics contend that the subsidy artificially distorts the market and discourages innovation.
Learning
Memory Aids
Mnemonic
Think: SUB-SIDY. The government gives money to sit UNDER (SUB) the SIDElines of the market to support it.
Conceptual Metaphor
SUPPORT IS A PROP (a subsidy props up an industry); GOVERNMENT IS A PARENT (a subsidy is parental financial support).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid translating as 'стипендия' (which is a scholarship/stipend). The closer equivalent is 'субсидия' or 'дотация'. 'Грант' is a closer match for 'grant', which is a type of subsidy.
Common Mistakes
- Using 'subsidy' for small personal allowances (use 'allowance'). Confusing 'subsidy' (given to producer/seller) with 'voucher' or 'benefit' (given to consumer). Incorrect: 'I got a subsidy for my groceries.' Correct: 'The supermarket receives a subsidy to keep bread prices low.'
Practice
Quiz
In which context is the word 'subsidy' LEAST likely to be used?
FAQ
Frequently Asked Questions
No. A subsidy is a grant that does not need to be repaid, whereas a loan must be repaid, often with interest.
Yes. In economic and political debates, it can imply unfair advantage, market distortion, or wasteful government spending (e.g., 'unjustified corporate subsidies').
A subsidy is typically paid to producers or suppliers to lower costs. A benefit is usually paid directly to individuals in need (consumers) to support their welfare.
To subsidise (UK) / subsidize (US). The act is 'subsidisation/subsidization'.
Collections
Part of a collection
Economics Terms
B2 · 50 words · Key vocabulary for economics and financial systems.